SOUTHWEST

1
SOUTHWEST

• MARKETING STRATEGY

2

• Low Fare, Low service, Point-to-Point

3
Short hauling

• The average aircraft trip length is 596 miles
  with an average duration of more than 1 hour and
  45 minutes for 2005.
  
• The shortest daily Southwest flight is between
  Austin (AUS) and Houston (HOU) (149 miles).
  
• The longest daily Southwest flight is between
  Philadelphia (PHL) and Oakland (OAK) (2,510
  miles).
  

4
High Frequency

• Daily Departures
• Nearly 3,000 flights a day
• Southwest aircraft fly an average of about 7
  flights per day, or about 12.5 hours per day.
  
• E Of E

5
Low Price

• Southwest's average passenger airfare is 91.15,
  and the average passenger trip length is about
  758 miles.

6
Low Cost

• Fuel Price
• Southwest consumed 1.2 billion gallons of jet
  fuel in 2004.
  
• Performance-enhancing Blended Winglets have been
  added to all of our fleet of 737-700s. All new
  737-700 aircraft now arrive from Boeing with
  Blended Winglets installed.

7
Fleet

• Southwest currently operates 429 Boeing 737
  jets.
  
• The Company's fleet has an average age of about 9
  years.
  

8

• TYPE NUMBER SEATS
  737-300 194
  137 737-500 251
  22 737-700 210
  137

9
Cities Served by Southwest

• Southwest flies to 60 cities in 31 states.

10
Reservations Centers

• Southwest Airlines currently operates six
  reservations centers located in Albuquerque,
  Chicago, Houston, Oklahoma City, Phoenix, and San
  Antonio.

11
Employees

• More than 31,000 total Employees throughout the
  Southwest system.
  
• The airline is approximately 81 percent
  unionized.
  

12
2004 Financial Statistics

• Net income 313 million
• Total passengers carried 70.9 million
• Total RPMs 53.4 billion
• Passenger load factor 69.5 percent
• Total operating revenue 6.5 billion

13
(No Transcript)